VEB guarantees US$3 billion of debt to Yamal LNG project

According to Reuters, VEB – the Russian development bank – has confirmed that it has provided a guarantee of US$3 billion of debt to the Novatek-led Yamal LNG project. The bank claims that this will help to encourage overseas financing for the project.

In early June 2016, Reuters reported that the Yamal LNG project received its first financing tranche – worth €1 billion – from Sberbank and Gazprombank. This tranche is just one part of an overall loan of €3.6 billion, which was agreed in April 2016.

Earlier in the year in April, Reuters confirmed that the Yamal LNG debt financing was at approximately US$18 billion – US$19 billion. This includes loans for approximately US$10 billion from Chinese banks.